The Securities and Exchange Commission (SEC) has issued a “settlement demand” to Elon Musk, as disclosed by the tech billionaire in a social media post on Thursday. In his post, Musk shared a letter from his attorney, Alex Spiro of Quinn Emanuel, addressed to SEC Chair Gary Gensler.
The letter indicated that the SEC had pressured Musk to accept a settlement that included a fine within 48 hours or face charges related to “Certain Purchases, Sales and Disclosures of Twitter Shares.” This investigation stems from concerns that Musk, or associates working with him, may have committed securities fraud in 2022 when he sold shares of Tesla and acquired a stake in Twitter, ahead of his leveraged buyout of the social media platform, now known as X.
In his post on X, Musk expressed his frustration with Gensler, stating, “Oh Gary, how could you do this to me?” accompanied by an emoji depicting a face holding back tears and a copy of Spiro’s letter. In another post, Musk humorously shared an AI-generated image of Gensler portrayed as a snail-like creature in a suit, stating he had asked @Grok to create the illustration.
A source familiar with the investigation, who requested anonymity due to the sensitive nature of the matter, confirmed that the SEC did send Musk a settlement offer. However, the timeframe for Musk’s response was extended beyond 48 hours. Without a settlement, the SEC may issue a Wells Notice. Then, its enforcement staff will recommend action to the commissioners, who will decide whether to file charges.
Neither Gensler, Musk, nor Spiro responded to requests for comment on Thursday. In his letter, Spiro accused the SEC of engaging in “more than six years of harassment” against Musk, including the recent reopening of an investigation into Musk’s health tech venture, Neuralink. Furthermore, Spiro claimed he had received a subpoena from SEC staff but refused to comply, suggesting an “improperly motivated campaign” against Musk and his associated individuals and companies.
In 2018, the SEC charged Musk with civil securities fraud after he tweeted about potentially taking Tesla private at $420 per share, claiming to have “funding secured.” Although no such deal materialized, both Musk and Tesla paid $20 million in fines and reached a revised settlement agreement that required Musk to temporarily step down as chairman of Tesla’s board. Since then, Musk has frequently expressed his disdain for the SEC.
Additionally, Musk has become a significant donor to Republican causes and played a role in supporting President-elect Donald Trump’s return to the White House. Following Trump’s recent electoral victory, he announced plans to fire the SEC chairman, leading to Gensler’s announcement of his resignation.
In a separate civil lawsuit related to the Twitter acquisition, the Oklahoma Firefighters Pension and Retirement System has sued Musk, alleging he concealed his substantial investments in Twitter and intentions to buy the company. The pension fund’s attorneys contend that Musk’s lack of clear disclosure disadvantaged other shareholders and influenced their decisions.
